RICHARDSON, TX -- EMS provider TXP Corp. has signed a letter of intent to acquire the assets and intellectual property for Siemens AG's optical network terminal technology, supporting broadband passive optical network and gigabit passive optical network standards. The deal is nonbinding and is subject to customary due diligence. The transaction is expected to close in the fourth quarter. The acquisition would give TXP rights to oversee manufacturing and marketing of the ONT technology. Siemens would retain an undisclosed licensing fee and rights to market the technology internationally. Other terms of the acquisition were not disclosed.

Separately, TXP announced that it hired Siemens' 35-person ONT development team, effective immediately. TXP also renamed its photonics group to iphotonics.

TXP president and CEO Michael C. Shores said, "The acquisition has the potential to dramatically expand our photonics business, and we expect it will position us at the forefront of the rapidly growing PON market. We are extremely excited about the prospects for this business, given the massive expenditures planned by the carriers as they role out 'triple-play' services nationwide."